Company Quick10K Filing
Quick10K
Vishay Intertechnology
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$17.88 144 $2,580
10-Q 2019-03-30 Quarter: 2019-03-30
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-29 Quarter: 2018-09-29
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-07-01 Quarter: 2017-07-01
10-Q 2017-04-01 Quarter: 2017-04-01
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-10-01 Quarter: 2016-10-01
10-Q 2016-07-02 Quarter: 2016-07-02
10-Q 2016-04-02 Quarter: 2016-04-02
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-10-03 Quarter: 2015-10-03
10-Q 2015-07-04 Quarter: 2015-07-04
10-Q 2015-04-04 Quarter: 2015-04-04
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-27 Quarter: 2014-09-27
10-Q 2014-06-28 Quarter: 2014-06-28
10-Q 2014-03-29 Quarter: 2014-03-29
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-07-10 Earnings, Exhibits
8-K 2019-06-12 Regulation FD
8-K 2019-06-05 Enter Agreement, Leave Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2019-05-14 Officers, Shareholder Vote
8-K 2019-05-08 Earnings, Regulation FD, Other Events, Exhibits
8-K 2019-03-11 Leave Agreement, Regulation FD
8-K 2019-02-14 Other Events, Exhibits
8-K 2019-02-05 Earnings, Regulation FD, Exhibits
8-K 2018-12-18 Other Events
8-K 2018-12-05 Regulation FD
8-K 2018-11-27 Officers, Exhibits
8-K 2018-10-29 Earnings, Regulation FD, Other Events, Exhibits
8-K 2018-09-13 Regulation FD
8-K 2018-08-21 Other Events, Exhibits
8-K 2018-08-07 Earnings, Regulation FD, Exhibits
8-K 2018-06-08 Regulation FD, Exhibits
8-K 2018-06-07 Enter Agreement, Off-BS Arrangement, Sale of Shares, Regulation FD, Other Events, Exhibits
8-K 2018-06-06 Regulation FD, Exhibits
8-K 2018-05-15 Shareholder Vote
8-K 2018-03-13 Regulation FD
8-K 2018-03-06 Officers, Exhibits
8-K 2018-02-06 Earnings, Regulation FD, Exhibits
TPH Tri Pointe Group 1,880
USPH US Physical Therapy 1,490
FI Frank's 1,350
ANH Anworth Mortgage Asset 408
GLRE Greenlight Capital 391
SMSI Smith Micro Software 104
IZEA IZEA 8
BVTK Bravatek Solutions 0
WIZD Wizard World 0
BDCO Blue Dolphin Energy 0
VSH 2019-03-30
Part I - Financial Information
Item 1. Financial Statements
Note 1 - Basis of Presentation
Note 2 - Revenue Recognition
Note 3 - Leases
Note 4 - Acquisition Activities
Note 5 - Income Taxes
Note 6 - Long-Term Debt
Note 7 - Accumulated Other Comprehensive Income (Loss)
Note 8 - Pensions and Other Postretirement Benefits
Note 9 - Stock-Based Compensation
Note 10 - Segment Information
Note 11 - Earnings per Share
Note 12 - Fair Value Measurements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 exhibit10-1.htm
EX-31.1 exhibit31-1.htm
EX-31.2 exhibit31-2.htm
EX-32.1 exhibit32-1.htm
EX-32.2 exhibit32-2.htm

Vishay Intertechnology Earnings 2019-03-30

VSH 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 vishayintertech_10q.htm QUARTERLY REPORT  
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended           March 30, 2019

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 1-7416

VISHAY INTERTECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)

Delaware
 
38-1686453
(State or Other Jurisdiction of Incorporation)
 
(I.R.S. Employer Identification Number)
     
63 Lancaster Avenue
Malvern, PA  19355-2143
 
610-644-1300
(Address of Principal Executive Offices)
 
(Registrant’s Area Code and Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ý Yes  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)
ýYes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 
Large accelerated filer ý
Accelerated filer
 
Non-accelerated filer (Do not check if smaller reporting company)
Smaller reporting company
 
Emerging growth company
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  ý No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading symbol
Name of exchange on which registered
Common stock, par value $0.10 per share
VSH
New York Stock Exchange

As of May 7, 2019, the registrant had 132,338,451 shares of its common stock and 12,097,409 shares of its Class B common stock outstanding.












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2


VISHAY INTERTECHNOLOGY, INC.
FORM 10-Q
March 30, 2019
CONTENTS

       
Page Number
   
         
     
         
     
         
     
         
     
         
     
         
     
         
     
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
     
3


PART I  - FINANCIAL INFORMATION

Item 1. Financial Statements

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)

   
March 30, 2019
   
December 31, 2018
 
   
(Unaudited)
       
Assets
           
Current assets:
           
Cash and cash equivalents
 
$
749,426
   
$
686,032
 
Short-term investments
   
8,411
     
78,286
 
Accounts receivable, net
   
391,960
     
397,020
 
Inventories:
               
Finished goods
   
137,317
     
138,112
 
Work in process
   
194,617
     
190,982
 
Raw materials
   
148,293
     
150,566
 
Total inventories
   
480,227
     
479,660
 
                 
Prepaid expenses and other current assets
   
141,555
     
142,888
 
Total current assets
   
1,771,579
     
1,783,886
 
                 
Property and equipment, at cost:
               
Land
   
74,499
     
87,622
 
Buildings and improvements
   
569,395
     
619,445
 
Machinery and equipment
   
2,525,394
     
2,510,001
 
Construction in progress
   
119,470
     
125,109
 
Allowance for depreciation
   
(2,339,944
)
   
(2,373,176
)
Property and equipment, net
   
948,814
     
969,001
 
                 
Right of use assets
   
96,281
     
-
 
                 
Goodwill
   
150,628
     
147,480
 
                 
Other intangible assets, net
   
67,524
     
65,688
 
                 
Other assets
   
146,224
     
140,143
 
Total assets
 
$
3,181,050
   
$
3,106,198
 

Continues on following page.
4


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)

   
March 30, 2019
   
December 31, 2018
 
   
(Unaudited)
       
Liabilities and equity
           
Current liabilities:
           
Notes payable to banks
 
$
18
   
$
18
 
Trade accounts payable
   
192,221
     
218,322
 
Payroll and related expenses
   
135,821
     
141,670
 
Lease liabilities
   
14,760
     
-
 
Other accrued expenses
   
160,756
     
229,660
 
Income taxes
   
70,653
     
54,436
 
Total current liabilities
   
574,229
     
644,106
 
                 
Long-term debt less current portion
   
492,830
     
494,509
 
U.S. transition tax payable
   
154,953
     
154,953
 
Deferred income taxes
   
86,209
     
85,471
 
Long-term lease liabilities
   
86,684
     
-
 
Other liabilities
   
79,492
     
79,489
 
Accrued pension and other postretirement costs
   
254,835
     
260,984
 
Total liabilities
   
1,729,232
     
1,719,512
 
                 
Redeemable convertible debentures
   
206
     
2,016
 
                 
Stockholders' equity:
               
Vishay stockholders' equity
               
Common stock
   
13,234
     
13,212
 
Class B convertible common stock
   
1,210
     
1,210
 
Capital in excess of par value
   
1,425,101
     
1,436,011
 
Retained earnings (accumulated deficit)
   
24,922
     
(61,258
)
Accumulated other comprehensive income (loss)
   
(15,323
)
   
(6,791
)
Total Vishay stockholders' equity
   
1,449,144
     
1,382,384
 
Noncontrolling interests
   
2,468
     
2,286
 
Total equity
   
1,451,612
     
1,384,670
 
Total liabilities, temporary equity, and equity
 
$
3,181,050
   
$
3,106,198
 

See accompanying notes.
5


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)

   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
             
Net revenues
 
$
745,159
   
$
716,795
 
Costs of products sold
   
534,000
     
511,495
 
Gross profit
   
211,159
     
205,300
 
                 
Selling, general, and administrative expenses
   
103,424
     
101,238
 
Operating income
   
107,735
     
104,062
 
                 
Other income (expense):
               
Interest expense
   
(8,392
)
   
(7,677
)
Other components of net periodic pension cost
   
(3,396
)
   
(3,519
)
Loss on early extinguishment of debt
   
(1,307
)
   
-
 
Other
   
5,308
     
(847
)
Total other income (expense)
   
(7,787
)
   
(12,043
)
                 
Income before taxes
   
99,948
     
92,019
 
                 
Income tax expense
   
24,307
     
29,474
 
                 
Net earnings
   
75,641
     
62,545
 
                 
Less: net earnings attributable to noncontrolling interests
   
182
     
179
 
                 
Net earnings attributable to Vishay stockholders
 
$
75,459
   
$
62,366
 
                 
Basic earnings per share attributable to Vishay stockholders
 
$
0.52
   
$
0.43
 
                 
Diluted earnings per share attributable to Vishay stockholders
 
$
0.52
   
$
0.39
 
                 
Weighted average shares outstanding - basic
   
144,554
     
144,327
 
                 
Weighted average shares outstanding - diluted
   
145,289
     
159,502
 
                 
Cash dividends per share
 
$
0.0850
   
$
0.0675
 

See accompanying notes.
6


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Comprehensive Income
(Unaudited - In thousands)

   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
             
Net earnings
 
$
75,641
   
$
62,545
 
                 
Other comprehensive income (loss), net of tax
               
                 
Pension and other  post-retirement actuarial items
   
1,457
     
1,607
 
                 
Foreign currency translation adjustment
   
(9,989
)
   
27,024
 
                 
Other comprehensive income (loss)
   
(8,532
)
   
28,631
 
                 
Comprehensive income
   
67,109
     
91,176
 
                 
Less: comprehensive income attributable to noncontrolling interests
   
182
     
179
 
                 
Comprehensive income attributable to Vishay stockholders
 
$
66,927
   
$
90,997
 

See accompanying notes.
7


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)

   
Three fiscal months ended
 
   
March 30, 2019
   
March 31, 2018
 
             
Operating activities
           
Net earnings
 
$
75,641
   
$
62,545
 
Adjustments to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
   
40,428
     
40,558
 
(Gain) loss on disposal of property and equipment
   
(173
)
   
(176
)
Accretion of interest on convertible debt instruments
   
3,490
     
1,309
 
Inventory write-offs for obsolescence
   
6,967
     
5,457
 
Deferred income taxes
   
(2,614
)
   
7,014
 
Loss on extinguishment of debt
   
1,307
     
-
 
Other
   
(1,744
)
   
2,908
 
Net change in operating assets and liabilities, net of effects of businesses acquired
   
(43,784
)
   
(72,756
)
Net cash provided by operating activities
   
79,518
     
46,859
 
                 
Investing activities
               
Capital expenditures
   
(36,367
)
   
(28,273
)
Proceeds from sale of property and equipment
   
395
     
184
 
Purchase of businesses, net of cash received
   
(11,862
)
   
(12,072
)
Purchase of short-term investments
   
(1,920
)
   
(39,243
)
Maturity of short-term investments
   
71,455
     
93,194
 
Other investing activities
   
2,893
     
(935
)
Net cash provided by investing activities
   
24,594
     
12,855
 
                 
Financing activities
               
Repurchase of convertible debentures
   
(22,695
)
   
-
 
Net proceeds (payments) on revolving credit lines
   
-
     
34,000
 
Net changes in short-term borrowings
   
-
     
52
 
Dividends paid to common stockholders
   
(11,249
)
   
(8,918
)
Dividends paid to Class B common stockholders
   
(1,028
)
   
(817
)
Cash withholding taxes paid when shares withheld for vested equity awards
   
(2,659
)
   
(2,297
)
Net cash provided by (used in) financing activities
   
(37,631
)
   
22,020
 
Effect of exchange rate changes on cash and cash equivalents
   
(3,087
)
   
9,825
 
                 
Net increase in cash and cash equivalents
   
63,394
     
91,559
 
                 
Cash and cash equivalents at beginning of period
   
686,032
     
748,032
 
Cash and cash equivalents at end of period
 
$
749,426
   
$
839,591
 

See accompanying notes.
8


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Equity
(Unaudited - In thousands, except share and per share amounts)

   
Common Stock
   
Class B Convertible Common Stock
   
Capital in Excess of Par Value
   
Retained Earnings (Accumulated Deficit)
   
Accumulated Other Comprehensive Income (Loss)
   
Total Vishay Stockholders' Equity
   
Noncontrolling Interests
   
Total Equity
 
Balance at December 31, 2017
 
$
13,188
   
$
1,213
   
$
1,752,506
   
$
(362,254
)
 
$
25,714
   
$
1,430,367
   
$
2,032
   
$
1,432,399
 
Cumulative effect of accounting change for adoption of ASU 2016-01
   
-
     
-
     
-
     
1,801
     
(1,801
)
   
-
     
-
     
-
 
Net earnings (loss)
   
-
     
-
     
-
     
62,366
     
-
     
62,366
     
179
     
62,545
 
Other comprehensive income
   
-
     
-
     
-
     
-
     
28,631
     
28,631
     
-
     
28,631
 
Conversion of Class B shares (31,800 shares)
   
3
     
(3
)
   
-
     
-
     
-
     
-
     
-
     
-
 
Temporary equity reclassification
   
-
     
-
     
1,080
     
-
     
-
     
1,080
     
-
     
1,080
 
Issuance of stock and related tax withholdings for vested restricted stock units (211,328 shares)
   
21
     
-
     
(2,318
)
   
-
     
-
     
(2,297
)
   
-
     
(2,297
)
Dividends declared ($0.0675 per share)
   
-
     
-
     
11
     
(9,746
)
   
-
     
(9,735
)
   
-
     
(9,735
)
Stock compensation expense
   
-
     
-
     
2,483
     
-
     
-
     
2,483
     
-
     
2,483
 
Balance at March 31, 2018
 
$
13,212
   
$
1,210
   
$
1,753,762
   
$
(307,833
)
 
$
52,544
   
$
1,512,895
   
$
2,211
   
$
1,515,106
 
                                                                 
Balance at December 31, 2018
   
13,212
     
1,210
     
1,436,011
     
(61,258
)
   
(6,791
)
   
1,382,384
     
2,286
     
1,384,670
 
Cumulative effect of accounting change for adoption of ASU 2016-02 (see Note 1)
   
-
     
-
     
-
     
23,013
     
-
     
23,013
     
-
     
23,013
 
Net earnings
   
-
     
-
     
-
     
75,459
     
-
     
75,459
     
182
     
75,641
 
Other comprehensive income (loss)
   
-
     
-
     
-
     
-
     
(8,532
)
   
(8,532
)
   
-
     
(8,532
)
Conversion of Class B shares (18 shares)
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
 
Temporary equity reclassification
   
-
     
-
     
3
     
-
     
-
     
3
     
-
     
3
 
Issuance of stock and related tax withholdings for vested restricted stock units (220,718 shares)
   
22
     
-
     
(2,681
)
   
-
     
-
     
(2,659
)
   
-
     
(2,659
)
Dividends declared ($0.0850 per share)
   
-
     
-
     
15
     
(12,292
)
   
-
     
(12,277
)
   
-
     
(12,277
)
Stock compensation expense
   
-
     
-
     
3,536
     
-
     
-
     
3,536
     
-
     
3,536
 
Repurchase of convertible senior debentures
   
-
     
-
     
(11,783
)
   
-
     
-
     
(11,783
)
   
-
     
(11,783
)
Balance at March 30, 2019
 
$
13,234
   
$
1,210
   
$
1,425,101
   
$
24,922
   
$
(15,323
)
 
$
1,449,144
   
$
2,468
   
$
1,451,612
 

See accompanying notes.
9

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 1 – Basis of Presentation

The accompanying unaudited consolidated condensed financial statements of Vishay Intertechnology, Inc. (“Vishay” or the “Company”) have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for presentation of financial position, results of operations, and cash flows required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. The information furnished reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair summary of the financial position, results of operations, and cash flows for the interim periods presented.  The financial statements should be read in conjunction with the consolidated financial statements filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.  The results of operations for the fiscal quarter and three fiscal months ended March 30, 2019 are not necessarily indicative of the results to be expected for the full year.

The Company reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first fiscal quarter, which always begins on January 1, and the fourth fiscal quarter, which always ends on December 31.  The four fiscal quarters in 2019 end on March 30, 2019, June 29, 2019, September 28, 2019, and December 31, 2019, respectively.  The four fiscal quarters in 2018 ended on March 31, 2018, June 30, 2018, September 29, 2018, and December 31, 2018, respectively.

Recently Adopted Accounting Guidance

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842).  The ASU is the result of a project between the FASB and the International Accounting Standards Board to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.  The guidance in ASU No. 2016-02 and all related ASUs is codified in Accounting Standard Codification (“ASC”) Topic 842, Leases.  The Company adopted ASC Topic 842 effective January 1, 2019.  Upon adoption at January 1, 2019, the Company recognized right of use assets of $91,462 and lease liabilities of $95,784 on the consolidated balance sheet.  The difference between the initial right of use asset and lease liability balances recognized upon adoption of ASC Topic 842 is primarily due to accrued lease incentive balances at December 31, 2018.

On December 20, 2018, the Company received sale proceeds of $45,500 and concurrently leased-back its former manufacturing site in Santa Clara, California, under a short-term arrangement, to raze the buildings.  Upon adoption of ASC Topic 842, the Company was required to reassess the accounting for these transactions.  The transactions did not qualify as a completed sale and leaseback under previous GAAP.  However, pursuant to ASC Topic 842’s sale and leaseback guidance, the transaction would qualify as a completed sale.  The Company recognized a cumulative-effect adjustment to retained earnings (accumulated deficit) of $23,013, to recognize the sale as of the date of adoption, and derecognized the land, building, and related deferred proceeds, which had been recorded in other accrued expenses.

The adoption of the ASU did not have a material impact on the Company's results of operations or cash flows.  See Note 3.

Recently Issued Accounting Guidance

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.  The ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.  The ASU is effective for the Company for interim and annual periods beginning on or after January 1, 2020, with the ability to early adopt for interim and annual periods beginning on or after January 1, 2019.  The Company is currently evaluating the effect of the ASU on its financial assets measured at amortized cost.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current financial statement presentation.
10

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 2 – Revenue Recognition

Sales returns and allowances accrual activity is shown below:

   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
Beginning balance
 
$
42,663
   
$
36,680
 
Sales allowances
   
28,211
     
24,188
 
Credits issued
   
(33,062
)
   
(28,450
)
Foreign currency
   
(235
)
   
288
 
Ending balance
 
$
37,577
   
$
32,706
 

See disaggregated revenue information in Note 10.
11

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 3 – Leases

The Company leases buildings and machinery and equipment used for manufacturing and/or sales and administrative purposes.  The Company is also party to various service, warehousing, and other agreements that it evaluates for potential embedded leases.  Substantially all of the Company’s leases are structured and classified as operating leases.  As of January 1, 2019, the Company accounts for its leases in accordance with ASC Topic 842.

The Company leases assets in each region in which it operates.  The Company’s leases are generally denominated in the currency of the leased assets' location, which may not be the functional currency of the subsidiary lessee.  Accordingly, the Company remeasures its lease liability and recognizes a transactional gain/loss for leases denominated in currencies other than the functional currency of the subsidiary lessee.

The Company recognizes right of use assets and lease liabilities for leases greater than twelve months in duration based on the contract consideration for lease components through the term of the lease and the applicable discount rate.  Leases with a duration less than or equal to twelve months are considered short-term leases.  The Company does not recognize right of use assets or lease liabilities for short-term leases and classifies the expense as short-term lease expense.  Variable lease payments based on an index or rate are included in the right of use assets and lease liabilities based on the effective rates at lease commencement.  Changes in the rates or indices do not impact the right of use asset or lease liability and are recognized as a component of lease expense in the statement of operations.  Variable lease payments not based on an index or rate are not included in the initial right of use asset and lease liability and are recognized when incurred as a component of lease expense in the statement of operations.

The Company has elected to not separate contract consideration for lease and non-lease components for its building leases.  In addition to the noncancellable period of a lease, the Company includes periods covered by extension options it is reasonably certain to exercise, termination options that it is reasonably certain not to exercise, and extension and termination options controlled by the lessor in its determination of the lease term.  The Company uses the rate implicit in the contract whenever possible when determining the applicable discount rate.  When the implicit rate is not used, the Company employs a portfolio approach based on the duration of the lease.  The portfolio lease rates are calculated monthly.

No individual lease is considered significant and there are no leases that have not yet commenced that are considered significant.

The net right of use assets and lease liabilities recognized on the consolidated condensed balance sheet for the Company's operating leases as of March 30, 2019 and the net right of use assets and lease liabilities recognized upon the adoption of ASC Topic 842 on January 1, 2019 are presented below:

   
March 30, 2019
   
January 1, 2019
 
Right of use assets
           
Operating Leases
           
Buildings and improvements
 
$
91,106
   
$
86,058
 
Machinery and equipment
   
5,175
     
5,404
 
Total
 
$
96,281
   
$
91,462
 
Current lease liabilities
               
Operating Leases
               
Buildings and improvements
 
$
12,076
   
$
10,644
 
Machinery and equipment
   
2,684
     
3,317
 
Total
 
$
14,760
   
$
13,961
 
Long-term lease liabilities
               
Operating Leases
               
Buildings and improvements
 
$
84,202
   
$
79,000
 
Machinery and equipment
   
2,482
     
2,823
 
Total
 
$
86,684
   
$
81,823
 
Total lease liabilities
 
$
101,444
   
$
95,784
 
12

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Lease expense is classified in the statement of operations based on asset use.  Total lease cost recognized on the consolidated condensed statement of operations is as follows:

   
Fiscal quarter ended
 
   
March 30, 2019
 
Lease expense
     
Operating lease expense
 
$
5,536
 
Short-term lease expense
   
833
 
Variable lease expense
   
12
 
Total lease expense
 
$
6,381
 

The Company paid $5,050 for its operating leases in the fiscal quarter ended March 31, 2019, which are included in operating cash flows on the consolidated condensed statement of cash flows.  The weighted-average remaining lease term for the Company's operating leases is 9.3 years and the weighted-average discount rate is 6.1% as of March 30, 2019.

The undiscounted future lease payments for the Company's operating lease liabilities are as follows:

   
March 30, 2019
 
2019 (excluding the three fiscal months ended March 30, 2019)
 
$
15,916
 
2020
   
18,527
 
2021
   
15,502
 
2022
   
13,036
 
2023
   
12,215
 
Thereafter
   
60,661
 

The undiscounted future lease payments presented in the table above include payments through the term of the lease, which may include periods beyond the noncancellable term.  The difference between the total payments above and the lease liability balance is due to the discount rate used to calculate lease liabilities.

The Company elected to use the package of practical expedients available in ASC Topic 842; and accordingly, did not reassess existing contracts for leases, the classification of existing leases, or initial direct costs for any existing leases.  The Company also elected to use the practical expedient available in ASC Topic 842 for land easements.

The Company did not elect the practical expedient available in ASC Topic 842 to use hindsight in determining the lease term.  Accordingly, the remaining lease term as of January 1, 2019 was used to calculate the initial right of use asset and lease liability.

13

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 4 – Acquisition Activities

As part of its growth strategy, the Company seeks to expand through targeted acquisitions of other manufacturers of electronic components that have established positions in major markets, reputations for product quality and reliability, and product lines with which the Company has substantial marketing and technical expertise.

On January 3, 2019, the Company acquired substantially all of the assets of Bi-Metallix, Inc. ("Bi-Metallix"), a U.S.-based, privately-held provider of electron beam continuous strip welding services for $11,862.  The Company was a major customer of Bi-Metallix, and the acquired business is being vertically integrated into the Company's Resistors & Inductors segment.  Based on an estimate of their fair values, the Company allocated $2,900 of the purchase price to definite-lived intangible assets.  After allocating the purchase price to the assets acquired and liabilities assumed based on an estimation of their fair values at the date of acquisition, the Company recorded goodwill of $3,324 related to this acquisition.  The results and operations of this acquisition have been included in the Resistors & Inductors segment since January 3, 2019.  The inclusion of this acquisition did not have a material impact on the Company's consolidated results for the fiscal quarter ended March 30, 2019.  The goodwill related to this acquisition is included in the Resistors & Inductors reporting unit for goodwill impairment testing.

Had this acquisition occurred as of the beginning of the periods presented in these consolidated condensed financial statements, the pro forma statements of operations would not be materially different than the consolidated condensed statements of operations presented.

The remaining fluctuation in the goodwill account balance is due to foreign currency translation.
14

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 5 – Income Taxes

The provision for income taxes consists of provisions for federal, state, and foreign income taxes.  The effective tax rates for the periods ended March 30, 2019 and March 31, 2018 reflect the Company’s expected tax rate on reported income from continuing operations before income tax and tax adjustments. The Company operates in a global environment with significant operations in various jurisdictions outside the United States.  Accordingly, the consolidated income tax rate is a composite rate reflecting the Company’s earnings and the applicable tax rates in the various jurisdictions where the Company operates.

As of March 30, 2019, the Company has approximately $300,000 of unremitted foreign earnings that the Company has deemed not permanently reinvested and thus has accrued foreign withholding and other taxes.  The Company continues to evaluate the timing and uses of the remaining amounts, and may decide to ultimately not repatriate some of these amounts.

The Company’s repurchase of a portion of the outstanding convertible debentures in the first fiscal quarter of 2019 (see Note 6) slightly reduced the Company’s expected 2019 tax rate.  The Company recognized a tax benefit on the pre-tax loss on early extinguishment of debt.  The Company also recognized a tax benefit of $1,312 resulting from the extinguishment, reflecting the reduction in deferred tax liabilities related to the special tax attributes of the debentures.

Income tax expense for the fiscal quarter ended March 30, 2019, includes tax benefit of $585 for the periodic remeasurement of the deferred tax liability recorded for the foreign taxes associated with the Company's cash repatriation program.

Income tax expense for the fiscal quarter ended March 31, 2018 included tax expense of $1,316 for the periodic remeasurement of the deferred tax liability recorded for the Company's cash repatriation program.

During the fiscal quarter ended March 30, 2019, the liabilities for unrecognized tax benefits increased by $1,446 on a net basis, due to increases for tax positions taken in the current and prior periods and interest, offset by expiration of a statute.
15

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 6 – Long-Term Debt

Long-term debt consists of the following:

   
March 30, 2019
   
December 31, 2018
 
             
Credit facility
 
$
-
   
$
-
 
Convertible senior notes, due 2025
   
498,629
     
495,203
 
Convertible senior debentures, due 2040
   
144
     
539
 
Convertible senior debentures, due 2041
   
8,085
     
12,812
 
Convertible senior debentures, due 2042
    -
     
923
 
Deferred financing costs
   
(14,028
)
   
(14,968
)
     
492,830
     
494,509
 
Less current portion
    -
      -
 
   
$
492,830
   
$
494,509
 

Convertible Debt Instruments

The following table summarizes some key facts and terms regarding the outstanding convertible debt instruments as of March 30, 2019:

   
Convertible Senior Notes
Due 2025
   
Convertible Senior Debentures
Due 2040
   
Convertible Senior Debentures
Due 2041
 
Issuance date
 
June 12, 2018
   
November 9, 2010
   
May 13, 2011
 
Maturity date
 
June 15, 2025
   
November 15, 2040
   
May 15, 2041
 
Principal amount as of March 30, 2019
 
$
600,000
   
$
350
   
$
20,790
 
Cash coupon rate (per annum)
   
2.25
%
   
2.25
%
   
2.25
%
Nonconvertible debt borrowing rate at issuance (per annum)
   
5.50
%
   
8.00
%
   
8.375
%
Conversion rate effective March 13, 2019 (per $1 principal amount)
   
31.7536
     
78.7076
     
57.4367
 
Effective conversion price effective March 13, 2019 (per share)
 
$
31.49
   
$
12.71
   
$
17.41
 
130% of the conversion price (per share)
 
$
40.94
   
$
16.52
   
$
22.63
 
Call date
   
n/a
   
November 20, 2020
   
May 20, 2021
 

The terms of the convertible senior debentures due 2040 and due 2041 are generally congruent.  The terms of the fully retired convertible senior debentures due 2042 were also generally congruent to the convertible senior debentures due 2040 and due 2041.

Prior to three months before the maturity date, the holders may convert their convertible senior debentures due 2040 and due 2041 only under the following circumstances: (1) during any fiscal quarter after the first full quarter subsequent to issuance, if the sale price of Vishay common stock reaches 130% of the conversion price for a specified period; (2) the trading price of the debentures falls below 98% of the product of the sale price of Vishay's common stock and the conversion rate for a specified period; (3) Vishay calls any or all of the debentures for redemption, at any time prior to the close of business on the third scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events.

Prior to December 15, 2024, the holders of the convertible senior notes due 2025 may convert their notes only under the following circumstances: (1) during any fiscal quarter after the fiscal quarter ending September 29, 2018, if the sale price of Vishay common stock reaches 130% of the conversion price for a specified period (initially $40.94); (2) the trading price of the notes falls below 98% of the product of the sale price of Vishay's common stock and the conversion rate for a specified period; or (3) upon the occurrence of specified corporate transactions.

The convertible senior debentures due 2040 became convertible subsequent to the September 30, 2017 evaluation of the conversion criteria, and have remained convertible for each subsequent quarterly evaluation through the March 30, 2019 evaluation, due to the sale price of Vishay's common stock exceeding 130% of the conversion price for the applicable periods.  The convertible senior debentures due 2040 will remain convertible until June 29, 2019, at which time the conversion criteria will be reevaluated.  At the direction of its Board of Directors, the Company intends, upon future conversion of any of the convertible debt instruments, to repay the principal amounts of the convertible debt instruments in cash and settle any additional amounts in shares of Vishay common stock.  The excess of the amount that the Company would pay to the holders of the convertible senior debentures due 2040 upon conversion over the carrying value of the liability component of the debentures currently convertible has been reclassified as temporary equity on the consolidated condensed financial statements.  The Company intends to finance the principal amount of any converted debentures using borrowings under its credit facility.  Accordingly, the debt component of the convertible senior debentures due 2040 continues to be classified as a non-current liability on the consolidated condensed balance sheets.
16

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

The quarterly cash dividend program of the Company results in adjustments to the conversion rate and effective conversion price for the convertible debt instruments effective as of the ex-dividend date of each cash dividend.  The conversion rate and effective conversion price for the convertible senior notes due 2025 is adjusted for quarterly cash dividends to the extent such dividends exceed $0.085 per share of common stock.

GAAP requires an issuer to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s nonconvertible debt borrowing rate when interest costs are recognized in subsequent periods.  The resulting discount on the debt is amortized as non-cash interest expense in future periods.

The carrying values of the liability and equity components of the convertible debt instruments are reflected in the Company’s consolidated condensed balance sheets as follows:

   
Principal amount of
the debt instruments
   
Unamortized discount
   
Embedded derivative
   
Carrying value of liability component
   
Equity component (including temporary equity) - net carrying value
 
March 30, 2019
                             
Convertible senior notes due 2025
 
$
600,000
     
(101,371
)
   
-
   
$
498,629
   
$
85,262
 
Convertible senior debentures due 2040 and due 2041
 
$
21,140
     
(12,935
)
   
24
   
$
8,229
   
$
8,767
 
Total
 
$
621,140
   
$
(114,306
)
 
$
24
   
$
506,858
   
$
94,029
 
                                         
December 31, 2018
                                       
Convertible senior notes due 2025
 
$
600,000
     
(104,797
)
   
-
   
$
495,203
   
$
85,262
 
Convertible senior debentures due 2040, due 2041, and due 2042
 
$
36,556
     
(22,352
)
   
70
   
$
14,274
   
$
15,092
 
Total
 
$
636,556
   
$
(127,149
)
 
$
70
   
$
509,477
   
$
100,354
 

Interest is payable on the convertible debt instruments semi-annually at the cash coupon rate; however, the remaining debt discount is being amortized as additional non-cash interest expense using an effective annual interest rate equal to the Company’s estimated nonconvertible debt borrowing rate at the time of issuance.  In addition to ordinary interest, contingent interest will accrue in certain circumstances relating to the trading price of the convertible senior debentures due 2040 and due 2041 and under certain other circumstances, beginning ten years subsequent to their respective issuance.  The convertible senior notes due 2025 do not possess contingent interest features.

Interest expense related to the convertible debt instruments is reflected on the consolidated condensed statements of operations for the fiscal quarters ended:

   
Contractual
coupon interest
   
Non-cash amortization of debt discount
   
Non-cash amortization of deferred financing costs
   
Non-cash change in value of derivative liability
   
Total interest expense related to the debt instruments
 
March 30, 2019
                             
Convertible senior notes due 2025
 
$
3,375
     
3,426
     
454
     
-
   
$
7,255
 
Convertible senior debentures
 
$
148
     
64
     
2
     
(18
)
 
$
196
 
Total
 
$
3,523
   
$
3,490
   
$
456
   
$
(18
)
 
$
7,451
 
                                         
March 31, 2018
                                       
Convertible senior notes due 2025
 
$
-
     
-
     
-
     
-
   
$
-
 
Convertible senior debentures
 
$
3,235
     
1,309
     
47
     
161
   
$
4,752
 
Total
 
$
3,235
   
$
1,309
   
$
47
   
$
161
   
$
4,752
 

The Company used cash to repurchase $960, $12,288 and $2,168 principal amounts of convertible senior debentures due 2040, due 2041, and due 2042, respectively, in the first fiscal quarter of 2019.  The net carrying value of the debentures repurchased were $396, $4,770, and $924, respectively.  In accordance with the authoritative accounting guidance for convertible debentures, the aggregate repurchase payment of $22,695 was allocated between the liability ($7,311) and equity (including temporary equity, $15,384) components of the convertible debentures, using the Company's nonconvertible debt borrowing rate at the time of the repurchase.  As a result, the Company recognized a loss on extinguishment of convertible debentures of $1,307, including the write-off of a portion of unamortized debt issuance costs.  The convertible senior debentures due 2042 have been fully repurchased, and the trustee has confirmed that the Company has satisfied and discharged its obligations under the indenture governing the convertible senior debentures due 2042.
17

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 7 – Accumulated Other Comprehensive Income (Loss)

The cumulative balance of each component of other comprehensive income (loss) and the income tax effects allocated to each component are as follows:

   
Pension and other post-retirement actuarial items
   
Currency translation adjustment
   
Total
 
Balance at January 1, 2019
 
$
(58,291
)
 
$
51,500
   
$
(6,791
)
Other comprehensive income before reclassifications
   
-
     
(9,989
)
 
$
(9,989
)
Tax effect
   
-
     
-
   
$
-
 
Other comprehensive income before reclassifications, net of tax
   
-
     
(9,989
)
 
$
(9,989
)
Amounts reclassified out of AOCI
   
2,064
     
-
   
$
2,064
 
Tax effect
   
(607
)
   
-
   
$
(607
)
Amounts reclassified out of AOCI, net of tax
   
1,457
     
-
   
$
1,457
 
Net other comprehensive income
 
$
1,457
   
$
(9,989
)
 
$
(8,532
)
Balance at March 30, 2019
 
$
(56,834
)
 
$
41,511
   
$
(15,323
)

Reclassifications of pension and other post-retirement actuarial items out of AOCI are included in the computation of net periodic benefit cost.  See Note 8 for further information.
18

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 8 – Pensions and Other Postretirement Benefits

The Company maintains various retirement benefit plans.

Defined Benefit Pension Plans

The following table shows the components of the net periodic pension cost for the first fiscal quarters of 2019 and 2018 for the Company’s defined benefit pension plans:

   
Fiscal quarter ended
March 30, 2019
   
Fiscal quarter ended
March 31, 2018
 
   
U.S. Plans
   
Non-U.S. Plans
   
U.S. Plans
   
Non-U.S. Plans
 
                         
Net service cost
 
$
-
   
$
852
   
$
-
   
$
948
 
Interest cost
   
424
     
1,291
     
371
     
1,242
 
Expected return on plan assets
   
-
     
(490
)
   
-
     
(488
)
Amortization of prior service cost
   
36
     
51
     
36
     
55
 
Amortization of losses
   
118
     
1,359
     
159
     
1,604
 
Curtailment and settlement losses
   
-
     
505
     
-
     
462
 
Net periodic benefit cost
 
$
578
   
$
3,568
   
$
566
   
$
3,823
 

Other Postretirement Benefits

The following table shows the components of the net periodic benefit cost for the first fiscal quarters of 2019 and 2018 for the Company’s other postretirement benefit plans:

   
Fiscal quarter ended
March 30, 2019
   
Fiscal quarter ended
March 31, 2018
 
   
U.S. Plans
   
Non-U.S. Plans
   
U.S. Plans
   
Non-U.S. Plans
 
                         
Service cost
 
$
35
   
$
72
   
$
34
   
$
75
 
Interest cost
   
77
     
30
     
68
     
30
 
Amortization of prior service (credit)
   
-
     
-
     
(37
)
   
-
 
Amortization of losses (gains)
   
(32
)
   
27
     
(10
)
   
27
 
Net periodic benefit cost
 
$
80
   
$
129
   
$
55
   
$
132
 
19

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 9 – Stock-Based Compensation

The Company has various stockholder-approved programs which allow for the grant of stock-based compensation to officers, employees, and non-employee directors of the Company.

The amount of compensation cost related to stock-based payment transactions is measured based on the grant-date fair value of the equity instruments issued.  The Company determines compensation cost for restricted stock units (“RSUs”) and phantom stock units based on the grant-date fair value of the underlying common stock adjusted for expected dividends paid over the required vesting period for non-participating awards.  Compensation cost is recognized over the period that an officer, employee, or non-employee director provides service in exchange for the award.

The following table summarizes stock-based compensation expense recognized:

   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
             
Restricted stock units
 
$
3,359
   
$
2,269
 
Phantom stock units
   
177
     
214
 
Total
 
$
3,536
   
$
2,483
 

The Company recognizes compensation cost for RSUs that are expected to vest and records cumulative adjustments in the period that the expectation changes.

The following table summarizes unrecognized compensation cost and the weighted average remaining amortization periods at March 30, 2019 (amortization periods in years):

   
Unrecognized Compensation Cost
   
Weighted Average Remaining Amortization Periods
 
             
Restricted stock units
 
$
5,669
     
1.0
 
Phantom stock units
   
-
     
0.0
 
Total
 
$
5,669
         

The Company currently expects all performance-based RSUs to vest and all of the associated unrecognized compensation cost for performance-based RSUs presented in the table above to be recognized.
20

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

2007 Stock Incentive Plan

The Company’s 2007 Stock Incentive Program (the “2007 Program”), as amended and restated, permits the grant of up to 6,500,000 shares of restricted stock, unrestricted stock, RSUs, stock options, and phantom stock units, to officers, employees, and non-employee directors of the Company.  Such instruments are available for grant until May 20, 2024.

Restricted Stock Units

RSU activity under the 2007 Program as of March 30, 2019 and changes during the three fiscal months then ended are presented below (number of RSUs in thousands):

   
Number of RSUs
   
Weighted Average Grant-date Fair Value per Unit
 
Outstanding:
           
January 1, 2019
   
904
   
$
14.77
 
Granted
   
314
     
19.85
 
Vested*
   
(349
)
   
11.50
 
Cancelled or forfeited
   
-
     
-
 
Outstanding at March 30, 2019
   
869
   
$
17.92
 
                 
Expected to vest at March 30, 2019
   
855
         

* The number of RSUs vested includes shares that the Company withheld on behalf of employees to satisfy the statutory tax withholding requirements.

The number of performance-based RSUs that are scheduled to vest increases ratably based on the achievement of defined performance criteria between the established target and maximum levels.  RSUs with performance-based vesting criteria are expected to vest as follows (number of RSUs in thousands):

Vesting Date
 
Expected to Vest
   
Not Expected to Vest
   
Total
 
January 1, 2020
   
167
     
-
     
167
 
January 1, 2021
   
141
     
-
     
141
 
January 1, 2022
   
174
     
-
     
174
 

Phantom Stock Units

The 2007 Program authorizes the grant of phantom stock units to the extent provided for in the Company’s employment agreements with certain executives.  Each phantom stock unit entitles the recipient to receive a share of common stock at the individual’s termination of employment or any other future date specified in the applicable employment agreement.  Phantom stock units participate in dividend distribution on the same basis as the Company's common stock and Class B common stock.  Dividend equivalents are issued in the form of additional units of phantom stock.  The phantom stock units are fully vested at all times.

Phantom stock unit activity under the phantom stock plan as of March 30, 2019 and changes during the three fiscal months then ended are presented below (number of phantom stock units in thousands):

   
Number of units
   
Grant-date Fair Value per Unit
 
Outstanding:
           
January 1, 2019
   
170
       
Granted
   
10
   
$
17.72
 
Dividend equivalents issued
   
1
         
Outstanding at March 30, 2019
   
181
         
21

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 10 – Segment Information

Vishay is a global manufacturer and supplier of electronic components.  Vishay operates, and its chief operating decision maker makes strategic and operating decisions with regards to assessing performance and allocating resources based on, five reporting segments: MOSFETs, Diodes, Optoelectronic Components, Resistors & Inductors, and Capacitors.  These segments represent groupings of product lines based on their functionality:

 
Metal oxide semiconductor field-effect transistors ("MOSFETs") function as solid-state switches to control power.
 
Diodes route, regulate, and block radio frequency, analog, and power signals; protect systems from surges or electrostatic discharge damage; or provide electromagnetic interference filtering.
 
Optoelectronic components emit light, detect light, or do both.
 
Resistors and inductors both impede electric current.  Resistors are basic components used in all forms of electronic circuitry to adjust and regulate levels of voltage and current.  Inductors use an internal magnetic field to change alternating current phase and resist alternating current.
 
Capacitors store energy and discharge it when needed.

Vishay's reporting segments generate substantially all of their revenue from product sales to the industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets.  A small portion of revenues is from royalties.

The Company evaluates business segment performance on operating income, exclusive of certain items (“segment operating income”).  Only dedicated, direct selling, general, and administrative expenses of the segments are included in the calculation of segment operating income.  The Company’s calculation of segment operating income excludes such selling, general, and administrative costs as global operations, sales and marketing, information systems, finance and administration groups, as well as restructuring and severance costs, goodwill and long-lived asset impairment charges, and other items.  Management believes that evaluating segment performance excluding such items is meaningful because it provides insight with respect to intrinsic operating results of the Company.  These items represent reconciling items between segment operating income and consolidated operating income.  Business segment assets are the owned or allocated assets used by each business.

The Company also regularly evaluates gross profit by segment to assist in the analysis of consolidated gross profit.  The Company considers segment operating income to be the more important metric because it more fully captures the business operations of the segments.
22

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

The following tables set forth business segment information:

   
MOSFETs
   
Diodes
   
Optoelectronic Components
   
Resistors & Inductors
   
Capacitors
   
Total
 
Fiscal quarter ended March 30, 2019:
                                   
Net revenues
 
$
137,341
   
$
167,840
   
$
60,562
   
$
260,471
   
$
118,945
   
$
745,159
 
                                                 
Gross profit
 
$
36,059
   
$
43,492
   
$
16,017
   
$
85,869
   
$
29,722
   
$
211,159
 
                                                 
Segment operating income
 
$
26,678
   
$
38,128
   
$
11,710
   
$
76,987
   
$
24,566
   
$
178,069
 
                                                 
Fiscal quarter ended March 31, 2018:
                                               
Net revenues
 
$
127,506
   
$
167,017
   
$
71,958
   
$
244,046
   
$
106,268
   
$
716,795
 
                                                 
Gross profit
 
$
32,022
   
$
43,200
   
$
27,233
   
$
78,530
   
$
24,315
   
$
205,300
 
                                                 
Segment operating income
 
$
22,558
   
$
37,931
   
$
22,794
   
$
70,002
   
$
18,893
   
$
172,178
 


   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
Reconciliation:
           
Segment Operating Income
 
$
178,069
   
$
172,178
 
Unallocated Selling, General, and Administrative Expenses
   
(70,334
)
   
(68,116
)
Consolidated Operating Income
   
107,735
   
$
104,062
 
Unallocated Other Income (Expense)
   
(7,787
)
   
(12,043
)
Consolidated Income Before Taxes
 
$
99,948
     
92,019
 
23

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

The Company has a broad line of products that it sells to OEMs, EMS companies, and independent distributors.  The distribution of sales by customer type is shown below:

   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
Distributors
 
$
411,560
   
$
404,060
 
OEMs
   
282,636
     
264,050
 
EMS companies
   
50,963
     
48,685
 
Total Revenue
 
$
745,159
   
$
716,795
 

Net revenues were attributable to customers in the following regions:

   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
Asia
 
$
259,726
   
$
285,478
 
Europe
   
278,899
     
267,382
 
Americas
   
206,534
     
163,935
 
Total Revenue
 
$
745,159
   
$
716,795
 

The Company generates substantially all of its revenue from product sales to end customers in the industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets.  Sales by end market are presented below:

   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
Industrial
 
$
281,590
   
$
280,212
 
Automotive
   
214,786
     
208,394
 
Telecommunications
   
53,280
     
45,924
 
Computing
   
47,508
     
47,431
 
Consumer Products
   
34,049
     
37,259
 
Power Supplies
   
30,127
     
34,243
 
Military and Aerospace
   
47,561
     
35,214
 
Medical
   
36,258
     
28,118
 
Total revenue
 
$
745,159
   
$
716,795
 
24

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 11 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share attributable to Vishay stockholders (shares in thousands):

   
Fiscal quarters ended
 
   
March 30, 2019
   
March 31, 2018
 
             
Numerator:
           
Net earnings attributable to Vishay stockholders
 
$
75,459
   
$
62,366
 
                 
Denominator:
               
Denominator for basic earnings per share:
               
Weighted average shares
   
144,375
     
144,160
 
Outstanding phantom stock units
   
179
     
167
 
Adjusted weighted average shares - basic
   
144,554
     
144,327
 
                 
Effect of dilutive securities:
               
Convertible and exchangeable debt instruments
   
237
     
14,610
 
Restricted stock units
   
498
     
565
 
Dilutive potential common shares
   
735
     
15,175
 
                 
Denominator for diluted earnings per share:
               
Adjusted weighted average shares - diluted
   
145,289
     
159,502
 
                 
Basic earnings per share attributable to Vishay stockholders
 
$
0.52
   
$
0.43
 
                 
Diluted earnings per share attributable to Vishay stockholders
 
$
0.52
   
$
0.39
 
25